Support and Resistance Level

Support and resistance level is highly important indicator for day trading strategy. These technical indicators are issential for market trend.

Support level is the price level where market sustains and the price doesn’t go down. This means the price is more likely to "bounce" up from this level rather than break through it. However, once the price has crossed this level, by an amount exceeding some noise, it is likely to continue dropping until it finds second support level.

Resistance level is the opposite of a support level. It is the price level where market sustains and the price doesn’t go up. This means the price is more likely to "bounce" down from this level rather than break through it. However, once the price has crossed this level, by an amount exceeding some noise, it is likely that it will continue rising until it finds second resistance level.

Breakout: - When price crosses support or resistance level it is called as Breakout.
E.g.:- If Nifty’s resistance level is 8000 & price moves above 8000 with volume it is breakout of resistance & if support is 7800 & price goes below 7800 with volume it is breakout of support.